Guidelines for Implementing PPPs in SADC

This policy brief by the South African Institute of International Affairs examines the implementation of public-private partnerships (PPPs) within the Southern African Development Community (SADC). It distinguishes PPPs from privatisation, highlights the potential for PPPs to address infrastructure deficits in Africa, and provides recommendations for improving governance, transparency, and public engagement to attract investment while avoiding hidden debt.

• PPPs differ from privatisation primarily in ownership, structure, and risk. In privatisation, ownership and responsibility are fully transferred to the private sector, whereas in a PPP, the public agency retains ownership and oversight of the asset, using the private sector to address needs through access to capital markets.
• Public sector projects often suffer from cost overruns and delays due to technical issues, 'optimism bias'—where promoters underemphasise risks to gain approval—and 'strategic deception', which involves the deliberate misrepresentation of facts to win contracts.
• Infrastructure deficits in sub-Saharan Africa are estimated by the World Bank to reduce economic growth by 2% and business productivity by up to 40%. PPPs are identified as a significant tool for meeting infrastructure targets in sectors such as electricity, ICT, and ports, which are the top three PPP sectors in the region.
• The SADC region shows varying levels of PPP maturity; South Africa is described as the leader, while other member states may lack dedicated PPP units. To improve outcomes, the document recommends establishing politically independent PPP units, improving due diligence on partners, and making public engagement a mandatory part of the project cycle.
• A significant barrier to PPP uptake in SADC is the reluctance of some governments to provide sovereign guarantees due to an aversion to contingent liabilities, which are often required by lenders for energy and other complex projects.
• While PPPs can help debt-ridden countries provide services, they can be more expensive than traditional borrowing. Specifically, PPPs with government guarantees can hide financial burdens from public view because payment obligations may not be included in official state debt figures.

APA

South African Institute of International Affairs (2020). Guidelines for Implementing PPPs in SADC. https://saiia.org.za/research/guidelines-for-implementing-ppps-in-sadc/

Chicago

South African Institute of International Affairs. Guidelines for Implementing PPPs in SADC. 2020. https://saiia.org.za/research/guidelines-for-implementing-ppps-in-sadc/.

Wikipedia

{{cite report |author=South African Institute of International Affairs |title=Guidelines for Implementing PPPs in SADC |date=28 February 2020 |url=https://saiia.org.za/research/guidelines-for-implementing-ppps-in-sadc/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{southafricaninstituteofinternationalaffairs2020guidelines, author = {{South African Institute of International Affairs}}, title = {{Guidelines for Implementing PPPs in SADC}}, institution = {South African Institute of International Affairs}, year = {2020}, month = feb, url = {https://saiia.org.za/research/guidelines-for-implementing-ppps-in-sadc/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }